While the two federal actions in Texas challenging the FTC’s non-compete ban have garnered much of the attention to date, a challenge of the FTC’s rule brought by a small tree trimming business in Pennsylvania is now in the spot light as the federal court there has indicated that it will issue a ruling by July 23rd.

Earlier this month, the Plaintiff ATS filed its Motion to Stay the Effective Date of the Non-Compete Rule in the Eastern District of Pennsylvania.

The FTC then sought additional time to brief Plaintiff’s motion and yesterday the Court issued the following briefing schedule:

THE FTC SHALL FILE ITS RESPONSE IN OPPOSITION TO ATSS MOTION FOR PRELIMINARY INJUNCTION (ECF NO. 10) ON OR BY JUNE 4, 2024;

ATS SHALL FILE ITS REPLY IN SUPPORT OF ITS MOTION ON OR BY JUNE 25, 2024;

SHOULD THE COURT DEEM A HEARING ON ATSS MOTION NECESSARY, A TENTATIVE HEARING DATE IS SCHEDULED FOR JULY 10, 2024 AT 12:00 P.M.

THE COURT WILL ISSUE A DECISION ON THE MERITS OF PLAINTIFF ATSS MOTION FOR PRELIMINARY INJUNCTION (ECF NO. 10) BY JULY 23, 2024.

The Texas federal court in the Ryan case has indicated that it will issue a decision on the Plaintiffs’ challenge of the non-compete ban by July 3, 2024.

Accordingly, we may be looking at differing decisions depending upon how the courts’ rule, leading to further employer confusion and consternation with the looming September 4th effective date of the FTC’s non-compete ban.